Dubai-based Danube Building Materials is planning to open 15 more retail branches across the Middle East as its revenue for the first half of 2011 surges 21 percent, the construction supplies firm confirmed on Sunday.
Danube reported revenue for the first six months of 2011 rose 21 percent, is on target to reach $435m by the end of 2011 and is now closer to its aim to reach $1bn in revenue per annum by 2015.
In order to capitalise on this growth, Danube announced plans to ramp up the expansion of its retail arm Danube Buildmart and open 15 more branches across the Middle East by 2012.
Danube’s retail division is one of its key growth areas and is expected to see up to 40 percent growth in revenue in 2011, boosted by a 46 percent rise in 2010.
Established in 1993, Danube supplies up to 15,000 building products and has 14 showrooms across the UAE. Headquartered in Dubai, it also has two branches in Oman, one each in Bahrain, Saudi Arabia and India and offices in China and Canada.
The first half of 2011 saw it open three retail outlets, including Sharjah and Al Dibba in the UAE and in Saudi Arabia.
“The 21 per cent growth that we have gained for the first half of 2011 clearly shows that we are on track to meet our target of $1bn in revenue for 2015. The increase in revenue has also given us the confidence to look forward in reaching $435m by year’s end,” said Rizwan Sajan, chairman of Danube Building Materials.
The news is a welcome indicator for the beleaguered Dubai construction sector, which was one of the major sectors impacted by the downturn in the real estate sector. Up to half of projects were canceled or ground to a halt, cranes were left to gather dust, construction rises slumped and many trade creditors struggled to get paid by master developers.
Recent industrial reports have shown that the UAE’s construction industry will see average growth of around 20 percent from 2010 to 2013.
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